Farm tourism development in Taiwan

In Taiwan, agricultural products now face extensive competition in the recently liberalized market of international agricultural trading since Taiwan joined the World Trade Organization (WTO) in 2002. Agricultural production values fell dramatically in 2004, and accounted for only 1.68% of the GDP, whereas the value of the service industry rose to 72.73% (National Statistics of Taiwan, 2004). In an attempt to soften the effects for farmers, the government

has actively tried to assist in diversifying agricultural operations. One of the most popular reactions was a turn to farm tourism in hopes of attracting dollars, generating jobs and supporting retail growth. The local tourism industry has taken off in recent years for two reasons: the per capita income has grown to more than $13,000 (Ministry of Economic Affairs, 2005), and a five-day workweek consisting of 40 hours has been officially implemented, which is half a day less than previously. Tourism receipts accounted for more than 5% of the GDP in 2005, which serves as another major contributing factor towards Taiwanese economic growth.

To assist the development of farm tourism, the various levels of government have largely relaxed regulations in terms of land-use and business operation, and provided substantial financial assistance. The farm tourism industry is experiencing a major upturn as a result. The number of leisure farms has in turn flourished, rising from 518 in 1999 to 1,102 in 2004 (see Figure 2.2).

The total output value is measured at $13.7 million USD, with a tourist

1974 1979 1984 1989 1994 1999 2004 Year

Number of leisure farm

Figure 2.2 Evolution of farm tourism in Taiwan.

population of 8.5 million (The Council of Agriculture of Taiwan, 2005).

The farm tourism comprises two principal forms: non-accommodation and accommodation-related activities; some farms participate in both (Shaw and Williams, 1994). A simplistic list of farm tourism elements is provided by Clarke (1996a) (see Table 2.1), many are specifically used for tourism purposes.

Davies and Gilbert (1992) identified similar components, segmenting farm tourism into three distinct categories, viz. accommodation-based, activity-based, and day-visitor-based.

Table 2.1

Farm tourism elements － according to Clarke (1996a, b) Attractions － permanent Attractions － events Farm visitor centre Farm open days

Self-guided farm trails Guided walks

Farm museums Educational visits

Farm centre Demonstrations

Conservation areas Country parks

Access (rural) Activities

Stile/gate maintenance Horse-riding/trekking Footpaths/bridleways/tracks Fishing

Shooting/clay Boating

Accommodation Amenities

Bed and breakfast Restaurants

Self-catering Cafes/cream teas

Camping and caravanning Farm shops/roadside stalls

Bunkhouse barns Pick your own

Picnic sites

In this study, leisure farms can be categorized into two groups according to

the classification developed by Davies and Gilbert (1992): large-scale farms with accommodation and activity services, and small-scale farms. In Taiwan, 90% of the leisure farms are designated as small-scale farms with a land scale of less than 10 hectares and less than six staff members (The Council of Agriculture of Taiwan, 2005). These are family-run farms that only operate over a short season and generate a relatively low income. There are 61 leisure farms identified as large-scale farms with better resource capabilities. Although small in number, these large-scale farms accounted for more than 52% of the market turnover, and the annual growth rate was significant (approximately 20%). The 61 large-scale farms offer accommodation and various activity services on their farms as part of the overall package, in an attempt to meet the growing demand for the transition from farm to farm tourism. Based upon research into the farm activities offered by those operators advertising in the internet, we found the results given in Table 2.2, based on our survey. Through various activities it enables tourists to understand the farm production process (e.g. pick your own process) plus experience the excellence and the sometimes bitterness of agricultural life.

Table 2.2

Accommodation and activities provided by 61 large-scale farms Accommodation

Visiting natural attractions 81%

Hiking 64%

Cycling 19%

Education, social and culture

Educational activities of natural ecology 64%

To experience rural life 60%

Agricultural festivals and cultural activities 18%

Food and beverages

Local cuisine 59%

Agriculture product retail 36%

Source: our survey

As indicated in Figure 2.3 below, most of the large-scale farms are agriculture-based (76%), whereas 21% are ranch-based, and 3% are fishery/forestry-based. In terms of geographical location, many farms are clustered together. This increases competition, as farms in the same cluster have similar offerings in terms of nature, agriculture and accessibility. The study cluster chosen for this study is situated in northern-east Taiwan. Surrounded by mountains and close to the sea, the study cluster is located in an area famous for its natural beauty, and is a very popular destination for a great number of Taipei metropolitan residents (i.e. 6.8 million) (National Police Agency, Ministry of The Interior, 2006), who account for one third of the whole Taiwanese

population. In the study cluster, we specified Tou-Chen leisure farm for our study case. According to our pre-study survey, it is the best farm to study the BI of family groups, as it hosted the greatest number of family customers within the study cluster. The Tou-Chen farm is situated on 120 hectares, and has 72 resort rooms as well as a broad range of sports, cultural, educational and social activities.

Great Taipei area Population: 6.8 million

Study cluster

Figure 2.3 Distribution of large leisure farms in Taiwan and the study case

Tou-Chen leisure farm

10 Km

Farm-based Agriculture Ranch Fishery Forestry Cluster

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